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WPD set to win Hyder
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August 16, 2000: 6:21 a.m. ET
Takeover panel rejects rival Nomura appeal, accepts WPD's $850M bid
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LONDON (CNNfn) - U.S.-based Western Power Distribution moved a step closer to winning a four-month takeover battle for Welsh water and electric utility Hyder PLC on Wednesday after Britain's takeover panel dismissed an appeal from Japanese investment bank Nomura International.
The U.K. regulators said WPD's revised sealed bid of 365 pence per share, valuing Hyder at £565 million ($849 million), could be accepted even though it was posted after Friday's deadline. WPD, which is owned by Southern Co (SO: Research, Estimates) of Atlanta and Allentown, Pa.-based PPL Corp (PPL: Research, Estimates), also would take on £1.8 billion in Hyder debt.
Nomura immediately launched an appeal after WPD posted its bid last week. The Japanese company did not submit an offer because it opposed the panel's decision to intervene Thursday to bring to a close the uncertainty surrounding the future of troubled Hyder.
 The takeover panel plans to issue a full statement Friday explaining its decision, unless another appeal is filed.
A Nomura spokesman said the Japanese investment bank was reviewing its options.
Ordering rival bidders to submit sealed bids is rare in corporate Britain, but such a method was used two years ago when U.S. power companies TXU (TXU: Research, Estimates) and PacifiCorp (PCX: Research, Estimates) were fighting over Britain's Energy Group PLC, owner of Eastern Electricity. PacifiCorp withdrew a day before it was supposed to submit its sealed bid.
Nomura raised its bid for a second time last Wednesday, offering 360 pence per share. That was 20 pence more than the bid from WPD, which Hyder approved Monday.
Hyder put itself up for sale in March after the government imposed tough price cuts that threatened to crimp earnings. Hyder's rival, Kelda PLC (KEL), recently announced plans to hand its regulated water assets back to the municipality, but the industry regulator blocked the proposal.
The takeover panel has given shareholders until Aug. 30 to accept the WPD offer.
Shares in Hyder slipped 3 pence, or 0.8 percent, to 363 pence in morning trading, suggesting investors believe that Nomura may throw in the towel and bring the saga to a close. 
--from staff and wire reports
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